AMD’s Stock Faces Challenges Amid Market Volatility

Advanced Micro Devices, Inc. (AMD) is a leading American semiconductor company known for its high-performance computing and graphics solutions. Headquartered in Santa Clara, California, AMD boasts a market capitalization of $155.3 billion and a diverse range of products. Its offerings include Ryzen CPUs for desktops and laptops, Radeon GPUs for gaming and professional graphics, and EPYC processors for data centers.

Stock Performance Lags Behind Market

Over the past year, AMD’s shares have significantly underperformed compared to the broader market. The company has seen a decline of 38.5%, while the S&P 500 Index ($SPX) has experienced a rally of 10.6%. Year-to-date, AMD’s stock is down 19.4%, contrasting with the S&P’s decline of only 5.3%.

Comparison with Semiconductor Sector

Focusing more narrowly, AMD has also underperformed the S&P Semiconductor SPDR (XSD), which has dropped 14.1% over the last year.

Recent Share Movement

On April 24, AMD’s stock rose 4.5%, outperforming the broader market rally. This surge followed positive investor sentiment driven by reports of easing U.S. trade tensions and favorable analyst coverage, enhancing confidence in the company.

Analyst Expectations and Performance

For the fiscal year ending in December 2025, analysts forecast AMD’s earnings per share (EPS) to grow by 42% to $3.72 on a diluted basis. The company has a solid earnings surprise history, having met or exceeded consensus estimates in each of the last four quarters.

Analyst Ratings Overview

Among the 41 analysts covering AMD, the consensus rating is a “Moderate Buy.” This is based on 26 “Strong Buy” ratings, one “Moderate Buy,” and 14 “Holds.” This configuration reflects a decrease in bullish sentiment compared to the previous month, when 27 analysts had rated the stock as a “Strong Buy.”

New Coverage and Price Targets

On April 30, Seaport Global Securities began coverage on AMD with a “Buy” rating and set a price target of $110, citing strong market share gains, consistent performance, and growth momentum.

The mean price target stands at $141.22, indicating a 45.1% upside from AMD’s current price levels. The highest price target of $225 suggests a potential upside of 131.1%.

On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.